The primary objective of this subsidiary is to diversify the company’s geographical presence in Europe and offer services to the machine building and superabrasive customers in the region. The subsidiary will focus on sales, servicing, and marketing activities related to Wendt’s core businesses, including super abrasives, machine building, and precision components.
The new subsidiary will be established with an initial investment of Rs 5 crore (approximately €0.55 million). The investment will be made in one or more tranches through cash consideration. The company expects to complete the incorporation process within the next three months, with the total investment in the subsidiary expected to be completed within two years.
The acquisition will not fall under related party transactions, and neither the promoter, promoter group, nor any group companies have any interest in the entity being acquired. However, since the entity will be a wholly owned subsidiary, it will be considered a related party to the company from the date of its incorporation.
The official announcement was made on 3rd March 2025, after market hours.
Wendt India is engaged in the manufacturing, sales, and servicing of super abrasives, high-precision grinding, honing, special purpose machines, and high-precision components.
The company’s consolidated net profit fell 14.4% to Rs 8.22 crore on 2.7% decline in revenue from operations to Rs 52.67 crore in Q3 FY25 over Q3 FY24.
The counter declined 2.66% to Rs 8,755 on the BSE.